Before we even get to competition issues, I think ORAC has highlighted a very valid and very realisitic hurdle that must be overcome - especially given BAE Systems' large presence and reliance on the US markets - how much of a hinderance will ITAR be here?
But even assuming the various security regulations are circumvented, a very cursory quick look suggests that BAE and EADS coming together would have significant influence in a number of platforms, including but not limited to Typhoon, Rafale, Mirage 2000, Eurocopter, ATR and Airbus Military. I can see the competition lawyers rubbing their hands in glee already.
Plus from a financial perspective, what is the rationale here? It will allow BAE to diversify away from a purely military perspective, moving into the civil and space arenas (oh good, something else for them to cock up) whilst giving EADS access to the US markets. I might be wrong, but the enhanced synergistic effects of a merger were the primary reasons touted for Glencore and Xastra's coming together; that very quickly moved from being a synergistic coming together of partners to a potential hostile takeover. I can see a similar thing happening here, and the British government keen to put a dent in the deficit giving serious consideration to anything that will help out with the balance sheet. This will be nothign other than a long drawn out process that will deliver nothing but profits for the lawyers and longer term, put BAE at risk of being subject to a hostile takeover by the French and German govt dominated EADS.
Last edited by Melchett01; 12th Sep 2012 at 21:56.